Vipshop Holdings Limited

Ladies and gentlemen, good day, everyone, and welcome to Bipshop Holdings Limited's second quarter 2021 earnings conference call. At this time, I would like to turn the call to Ms. Jessie Zheng, Bipshop's head of investor relations. Please proceed, ma'am.

Thank you, operator. Hello, everyone, and thank you for joining the Bipshop second quarter 2021 earnings conference call. With us today are Eric Shen, our co-founder, chairman, and CEO, and David Tsui, our CFO. Before management begins their prepared remarks, I would like to remind you that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties. that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our safe property statements, in our earnings release and public filings with the Securities and Exchange Commission, which also applies to this call to the extent any forward-looking statements may be made. Please note that certain financial measures used on this call, such as non-GAAP operating income, non-GAAP net income, and non-GAAP net income per ADS, are not presented in accordance with U.S. GAAP. Please refer to our earnings release for details relating to the reconciliations of our non-GAAP measures to GAAP measures. With that, I would now like to turn the call over to Mr. Eric Shim.

Good morning and good evening, everyone. Welcome and thank you for joining our second quarter 2021 earnings conference call. In the second quarter, we kept up our solid business momentum with co-operating metrics continue to trend healthily. Our user base maintained its strong growth, driven a continual increase in total GMV. During the quarter, Our total number of active cost users grew by 32% year-over-year to $51.1 million, and our total GMV increased by 25% year-on-year to RMB $48.1 million. Our most valuable user group showed especially strong growth momentum with cumulative super VIP membership increased by nearly 50% year-on-year, contributing about the third of the total GMV in the second quarter of 2021. These encouraging developments were the result of our relentless efforts to calibrate our strategic focus and increase operational synergies. In the second quarter, we continued to robust execute on our merchandising strategy. Our buyer teams successfully collaborated with an increasing number of suppliers and brand partners. As a result, we have not only been able to attract an increasing amount of unique branded merchandise to be sold on our platform, but have been able to do so at VIP shoppers' favorite discount price. In addition to our traditional deeply discount inventory covering an extensive range of brands, we now also carry a considerable proportion of made-for-VIP shop products. These are products specially customized for VIP shop by our brand partners. We are committed to increase the breadth and depth of our merchandising portfolio to offer users a differentiated selection of high-quality merchandise while creating dynamic price advantage for our discount sales. In the second quarter, we successfully instituted refinement at an operational level. User experience is one of our clear priorities. To this end, we implemented several initiatives, including better matching of merchandising selection to target users and improving overall incentive for our most valued users. On top of this, we also leveraged effective marketing to attract more younger shoppers to our platform. Looking forward to the second half of 2021, we remain committed to execution on our merchandising strategy. We are dedicated to create value for our new and existing customers, while also increasing the value we add for our core brand partners. We believe this will solidify our leading position in China's discount retail market. At this point, let me hand over the call to our CFO, David Cui, who will go over our operational and financial results.